The Kerala Water Authority (KWA) has nearly finalized an agreement with the French multinational corporation Suez Group for a significant drinking water project in Kochi city. Suez India, the Indian subsidiary of the Suez Group, won the Rs 2,511-crore project, which is a joint effort between the Asian Development Bank (ADB), the Union government, and KWA. In November 2023, the ADB sanctioned a $170 million (Rs 1,416 crore) loan to support the upgrade of water supply services in Kochi. This loan will cover 70% of the project’s cost, while the remaining 30% will be funded by the state government. The project aims to ensure a full-time water supply and involves transporting water from the Periyar River at Aluva and the Muvattupuzha River at Pazhur through a complex network of pipes. The state government prefers Suez Projects Private Limited for this task, in line with the central government’s new water policy aimed at reducing leakage and ensuring clean water. However, the contract is set to be awarded at 21% above the estimated cost, pending cabinet approval, raising concerns about the planning process.
Several questions arise regarding the project’s execution and financial implications. There is uncertainty about who will determine the billing, the extent of any price increases, and the criteria for such decisions. Concerns exist about whether the policy will prioritize Below Poverty Line (BPL) connections and public taps or focus on increasing revenue. Significant infrastructure changes, including new pump houses and pipes, are needed, and the cost of new water meters might fall on the consumers. Additionally, various government departments’ permissions are required for the city’s pipe replacement, posing potential delays. Questions about jurisdiction and responsibility for project delays remain unanswered, leading to concerns even among pro-government Water Authority service organizations.
The project, expected to take seven years to complete, will also see the state government cover maintenance costs for three years post-completion. Despite existing projects like the Amrit and Jal Jeevan Mission, the state has launched this costly new initiative, sparking transparency concerns. Mistrust surrounding the detailed project report has led to protests by drinking water protection committees in Kochi, who question the project’s true motives. They argue that the government is pushing forward despite opposition, possibly targeting commissions rather than genuinely improving water supply services.
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